Former employee of ASE and family members indicted

By Rich Chang / Staff reporter

A former employee of Advanced Semiconductor Manufacturing Co (ASE) and several of his family members were indicted by Taipei prosecutors yesterday for their alleged involvement in an insider trading case involving the takeover of another company by ASE in 2009.

Prosecutors said the suspects allegedly learned about ASE’s plans to purchase a large volume of shares in Universal Scientific Industrial Co (USI) as part of a takeover bid in November 2009.

They bought a large number of USI shares the day before the bid was to be announced and sold them a few days later, prosecutors said.

They allegedly made more than NT$10 million (US$343,700) in the process, prosecutors said.

ASE vice general-manager Kuo Hung-ming (郭宏銘) was released on bail during the investigation, but he was not indicted yesterday.

Prosecutors said evidence indicated that Allen Kan and his family members acted without the knowledge of ASE’s higher management.

Prosecutors said that since Allen Kan had admitted he used his relatives’ accounts to conduct insider trading, and has returned the profits, they asked the Taipei District Court to give lenient sentences.

ASE, the world’s largest chip packager, said yesterday the company was not complicit in any of their employees’ alleged illegal activities.

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